The Reef Faces Serious Compliance Issues in CRA's Latest Enforcement Action

December 12th, 2023 Business & Industry
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The Clark Street Investment Group Inc., operating under the name The Reef, has been subject to a formal complaint filed by the Cannabis Regulatory Agency (CRA) of Michigan. The complaint alleges multiple violations of the Medical Marihuana Facilities Licensing Act (MMFLA) and associated administrative rules by The Reef, a licensed medical marijuana provisioning center in Detroit, Michigan.

According to the CRA's investigation, The Reef was found to have engaged in several compliance breaches. These include selling marijuana products to individuals without medical marijuana cards and multiple instances of improper handling and labeling of marijuana products. During unannounced site visits, CRA investigators discovered numerous discrepancies in product tracking and inventory management. They found pre-rolled marijuana products without the required Metrc tags, which are vital for ensuring compliance with state tracking systems. In addition, the investigators uncovered instances of mishandling of marijuana products, including an employee licking his fingers while hand-rolling pre-rolls, leading to potential contamination.

The complaint also highlights the center's failure to securely lock areas containing marijuana products, a breach of state regulations requiring commercial-grade locks for security. Surveillance footage revealed employees consuming food and beverages in areas where marijuana products were stored, processed, or packaged, further violating state rules.

The CRA's complaint outlines numerous counts of violations, each pointing to a specific aspect of regulatory non-compliance, ranging from inaccurate inventory management to improper labeling and packaging of marijuana products. The Reef faces potential fines, license suspension, revocation, restriction, or non-renewal if these violations are confirmed.

The Reef has been given the opportunity to respond to these allegations and can request a hearing to contest the CRA's findings. This case underscores the importance of stringent compliance with state cannabis regulations and the ongoing oversight role of agencies like the CRA in ensuring safe and legal cannabis operations.

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